West Midlands business leaders see potential in investment zones

Nearly a year since the zones were first announced by then-chancellor Kwasi Kwarteng in the autumn ‘mini-budget’, mid-market business leaders in the region are encouraged by the blueprint for what it could mean for the area.

In Grant Thornton’s latest business outlook tracker survey, two thirds (66 per cent)of business leaders in the West Midlands – one of the proposed regions for a zone – said zones will help towards the Government’s Levelling Up agenda.

The zones provide a number of financial incentives to local businesses in the area and a clear majority (60 per cent) of West Midlands business leaders believe that these incentives, such as Stamp Duty Land Tax relief and 100 per cent business rates relief, are focused on the right areas to encourage business investment.

The same percentage of respondents also believed that being located within an investment zone would encourage businesses to stay within the local area.

However, the survey also revealed that business leaders in the West Midlands believe that the 12 proposed locations are not completely adequate, with 58 per cent believing that there should be more investment zones located in other areas in the UK.

Currently, eight of the dozen proposed zones will be in England with at least one of the remaining four in each of Scotland, Wales and Northern Ireland. In addition to the West Midlands, seven other English regions have been shortlisted.

James Brown, practice leader for Grant Thornton in the West Midlands: “From our latest tracker, it is clear that business leaders in the West Midlands can envisage the benefits the extra funding will have on the region, which will hopefully help drive long term economic growth and increase opportunities for all who are located here.

“The West Midlands is a region with many strengths. While Birmingham has long been proud to be home to leading manufacturers, the arrival in recent years of major global players in the financial sector shows our biggest city is continuing to attract businesses from across the world. Elsewhere, Coventry continues to bolster its national and international reputation following its triumphant 2021 City of Culture status, and Wolverhampton is primed to build further on its strengths in advanced manufacturing, construction and transport.

“Yet it is vital that businesses throughout the entire region feel the benefit of the Investment Zone, and at Grant Thornton we look forward to working with businesses of all sizes across the five counties to ensure every opportunity is seized upon.”